Components Of The Current Account

Question 1

Components of the current account

Answer 1

Trade in goods
Trade in services
Income
Transfers

Question 2

Causes of current account surplus

Answer 2

Exporting more than importing
Recession
Competitive exports
High level of natural resources
Exports worth more than imports
High level of exports

Question 3

Causes of current account deficit

Answer 3

Importing more than exporting
Sustained economic growth
Uncompetitive exports
Low level of natural resources
Exports worth less the imports
Low levels of exports

Question 4

Components of financial account

Answer 4

FDI
Portfolio investment
Reserves